Setup your Business in Italy
We provide following services in Italy through our affiliates, which are fully authorised agent of Italian revenue agency called “AgenziaEntrate”:
Business start-up advice
Bookkeeping and bank reconciliations
Fully outsourced accounts department
Payroll support or fully outsourced payroll managed by us
VAT refund and payments
Double taxations reliefs
Taxation advice for individuals
Specialist corporation tax services
Property and land transactions planning
Business development and consultancy
Compliance services with local tax authorities
Main taxes in Italy
Income tax for individuals Corporate income tax Real Estate Taxes Taxation of financial incomes Capital gain tax Branch tax Withholding tax Taxes on inheritance and donations
Tax rates at a glance (As of July 2015)
Corporate income tax 27.5% (a) Capital gains 0% to 27.5% Branch tax 28% Withholding tax Dividends 0% to 26% (b) Interest 0% to 12.5% to 26% (c) Royalties from patents and licences 0% to 30% (see note d below) Branch remittance tax n/a
Net operating losses (Years)
Carryforwards No time limit
In addition to this rate, a 3.9% regional tax is applicable on productive activities (IRAP). Dividends paid to a non-resident corporation are subject to a 26% withholding tax or to a 1.375% withholding rate when paid to a company subject to tax and resident in the EU or EEA/EFTA included in the white list, unless the rate is reduced under a tax treaty or dividends qualify for exemption under the EU Parent-Subsidiary directive. Interest on loans is taxable at 26%, unless in case of medium/long term loans granted by UE banks and certain other financial entities which apply a zero withholding tax. Non-exempt interest on current accounts and bonds is subject to the 26% rate. The rates may be reduced under an applicable tax treaty or exempted under the Interest/Royalty Directive. The rate may be reduced under an applicable tax treaty.
Italy Income Tax Rates 2015 (Last partial update, October 2015))
Taxation of an individual's income in Italy is progressive. In other words, the higher the income, the higher the rate of tax payable.
In 2015 the tax rate for an individual is between 23%-43%, In addition to direct taxation (IRPEF), there is also a regional tax of 1.2%-2.03% and a municipal tax of 0.1%-0.8%.
There are reduced rates of tax and tax exemptions available to certain income earners.
The standard rate of Italy corporate tax (IRES) in 2015 is 27.5%%.
In addition, local tax (IRAP) is imposed at a rate of generally 3.9%, bringing the effective tax rate to 31.4%.